Shell, Virent Unite on Sugar Biofuels

Royal Dutch Shell
PLC is developing sugar biofuels suitable for standard car engines with fuel-technology company Virent Energy Systems Inc., in a move to bring new energy sources closer to mass consumption.

Shell said it started a five-year joint research-and-development effort with the Madison, Wis., company to convert plant sugars directly into gasoline and gasoline-blend components, rather than ethanol.

The development of biofuels has been hindered by the need for special fuel-distribution infrastructure and vehicle engines. Financial terms of the deal weren't disclosed.

Separately, Shell said the U.S. Department of Justice and Securities and Exchange Commission are examining corruption allegations in Shell's use of a freight forwarding company. Shell said it was contacted in July by the DOJ regarding its use of a unit of Panalpina World Transport Ltd., a shipping and logistics-management company based in Switzerland.

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